East Side group asks city for help

East Side group asks city for help

ASHEBORO — In the ongoing effort to save two properties in east Asheboro from foreclosure, Deneal McNair sought assistance from the Asheboro City Council on Thursday night.

“What will the city government be willing to do to keep these buildings from going into foreclosure?” McNair asked in remarks during the council’s regular February meeting.

McNair is president of the recently reorganized board of the East Side Improvement Association, a non-profit group that faces default on a $175,000 loan taken out in 2000 to renovate a gymnasium on the former campus of Central School in east Asheboro. An elementary school on the property is also affected.

The outstanding debt is $82,940.99.

Several council members and Mayor David Smith asked questions about the situation, but took no action.

“We are not prepared to discuss this tonight,” Smith said.

City Manager John Ogburn added that council members had heard concerns about saving the properties — which have served as a hub of community activity for decades — and suggested that McNair keep him informed of the progress in staving off foreclosure.

A grassroots fundraising initiative kicked off at a community meeting on Jan. 21 in the gymnasium on Franks Street. At that time, McNair said the foreclosure date was Feb. 13. The suggested goal was to raise $25,000 by Feb. 10 to show the bank that there was a willingness and an ability to pay the debt.

At Thursday night’s meeting, McNair said that he expects the bank to give the non-profit group an extension on the loan.

He also said that fundraising has gone well, with contributions coming from donors of all races, from near and far. By the weekend, he said, he expects donations to total $20,000-$25,000.

McNair said the groundwork is being laid to develop new contracts with two of the tenants — the Central Boys & Girls Club, which is housed in the gym, and the Asheboro Day Care Center, which is in a portion of the former elementary school building. Randolph Community College also leases space in the building.

McNair said mismanagement of business by the former ESIA board led to the default.

The Boys & Girls Club pays $1 annually to use the gym.

“Great program. Bad agreement,” McNair said. “It was an inadequate business agreement. It was doomed to fail from the start.”

In an interview after the presentation, McNair said the day-care center’s rent has not been paid in at least two years.

The goal, McNair said, is to secure the properties and develop a plan to make them sustainable.

Michele Hammond, vice president of the new ESIA board, said the new leadership wants to save the buildings, then revamp the offerings, so that children can move from the day care to the Boys & Girls Club as part of a learning continuum.

“You make your community stronger through education,” she said.

Smith left the door open for city involvement.

“If the city were to do anything,” he said, “we would expect to see a business plan, including a sustainability plan.”

“We are seeking wise counsel,” McNair said. “We are wanting to get this thing turned around.”